GOIL GROUP - Annual Reports Ghana

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GOIL GROUP Facts Behind the Figures May 2019 Presentation to the Ghana Stock Exchange

Table of Content 1 Introduction 3 2 Background of GOIL 6 3 Corporate Performance 12 4 Strategic Direction This document is prepared by Ghana Oil Company Limited 22 2

Introduction GOIL has over the years made significant strides in transforming itself from a near-moribund state enterprise to become the number one oil marketing giant in the country. Prior to 2007, the downstream sector of the petroleum industry was regulated and dominated by multinationals who controlled nearly 72% of the total market share. GOIL was not in the position to compete with these multinationals who were heavily supported by their parent companies abroad This was GOIL in the Past This document is prepared by Ghana Oil Company Limited 3

Introduction To be able to catch up with the competition and outperform the multinationals, there was the need for the company to embark on a new strategic direction, restructure its operations and rebrand to become a brand of choice for Ghanaians. From 2007, Management of GOIL embarked on a strategic road map to change the face of the company. The following strategic and tactical initiatives were adopted: Developed a 5 year strategic plan to guide the company in fulfilling its new objectives. Changed the company’s Vision and Mission in line with its new objectives. Listed the company on the Ghana Stock Market to raise capital for expansion Rebranded the company with a new logo to be identified as a brand of choice for customers. Value proposition that will identify the company as an indigenous OMC marketing quality petroleum products competitively. Changed service stations outlook New corporate culture dubbed “ Good energy comes with a Smile” Aggressive communication programme Increased the number of service stations spread across the country. Embarked on developing new infrastructure to support its operations to become a market leader These initiatives significantly changed the face of GOIL. This document is prepared by Ghana Oil Company Limited 4

Introduction This is GOIL today: This document is prepared by Ghana Oil Company Limited 5

Background of GOIL Ghana Oil Company Limited (GOIL) was initially incorporated on June 14, 1960 as AGIP Ghana with AGIP SPA of Italy and SNAM SPA as shareholders. In December 1968, Hydrocarbons International of Zurich, Switzerland bought into the company. In 1974, the Government of Ghana acquired 100% shares and changed the name to Ghana Oil Company Limited. It is registered with 1,000,000,000 shares of no par value out of which 391.86 million shares have been issued. The Company has incorporated three subsidiaries currently being managed under the GOIL Group. This document is prepared by Ghana Oil Company Limited 6

Background of GOIL Our vision is to be a world-class provider of goods and services in the petroleum and other areas of the energy industry. VISION & MISSION Our mission is: to market quality petroleum and other energy products and services in all its branches in an ethical, healthy, safe, environmentally friendly and socially responsible manner. to produce and manufacture goods or provide services which enhance or support the marketing, distribution and sale of the company’s products and services This document is prepared by Ghana Oil Company Limited 7

Background of GOIL Subsidiaries GOENERGY Limited, a Bulk Oil Distribution Company (BDC), whose operations are to distribute petroleum products to Oil Marketing Companies (OMC’s); GOIL Offshore Limited, an offshore company to provide offshore bunkering facilities to rigs, vessels and oil tankers as well as engaging in upstream activities. Shareholding Structure Name of Shareholder Government of Ghana Social Security and National Insurance Trust Bulk Oil Storage and Transport Others Total Holdings 34.23% 25.00% 20.03% 20.74% 100% GO Financial Services Limited to provide electronic payment system and money transfer services. This document is prepared by Ghana Oil Company Limited 8

Background of GOIL The company's main business is marketing and distribution of petroleum products in Ghana. Fuels Marketing Bitumen LPG ATK This document is prepared by Ghana Oil Company Limited Bunkering Lubricants GoCard 9

BACKROUND OF GOIL Depots Marketing Arms Zonal Office North Zonal Office Upper Middle Belt Zonal Office West Tamale Buipe Zonal Office Middle Belt Kumasi Zonal Office South East Zonal Office Tema Tema Takoradi Zonal Office South Accra This document is prepared by Ghana Oil Company Limited 10 10

Background of GOIL HISTORICAL TIMELINE 1960 1968 The company was incorporated as a Private Limited Liability Company on June 14, 1960 as AGIP Ghana Company Limited. The shareholders were AGIP SPA of Italy and SNAM S.P.A 1974 1976 Government of Ghana acquired shares of AGIP SPA and Hydrocarbons International Holdings SNAM S.P.A. transferred its shares to Hydrocarbons International Holdings 2010 - 2012 2013- 2016 2007 Conversion from Private Limited Liability Company to a Public Company and Listing on the Ghana Stock Exchange Special resolution is passed and name of Company changed to Ghana Oil Company Limited Incorporation of: GOENERGY Limited GOIL Offshore Limited GO Financial Services Rebranding started in 2010, implemented in 2011 and launched in 2012. This document is prepared by Ghana Oil Company Limited 2018 Partnered with ExxonMobil for upstream oil exploration 11

Corporate Performance PRODUCT PERFORMANCE Products Sales Volume (Metric Tonnes) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - Gasoline Diesel ATK MGO Bunkering LPG 2014 167,204 192,678 16,117 23,985 12,581 2015 239,155 266,516 15,881 34,622 14,409 2016 268,476 285,913 12,212 36,511 19,031 2017 265,904 264,581 14,607 52,057 22,299 2018 278,626 261,988 15,477 46,562 27,865 Product Market Share Petroleum Product 2014 2015 2016 2017 2018 GASOLINE 14.9% 20.3% 24.7% 24.6% 22.2% GASOIL 13.4% 16.4% 19.7% 22.0% 18.3% ATK 16.2% 14.2% 9.2% 8.8% 7.7% MGO Bunkering 25.1% 25.8% 18.7% 26.5% 38.0% LPG 5.2% 5.1% 6.8% 8.1% 9.7% This document is prepared by Ghana Oil Company Limited Ranking 2018 1 1 4 1 1 12

Corporate Performance PRODUCT PERFORMANCE Product Market Share Gasoline Market Share 2014-2018 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 13.4% 2014 19.7% 16.4% 22.0% 22.2% GOIL Aggregate Market Share 2014-2018 2015 2016 2017 2018 Gasoil Market Share 2014-2018 30.0% 24.7% 25.0% 20.0% 15.0% 24.6% 20.3% 18.3% 14.9% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 18.20% 18.30% 2016 2017 16.68% 15.77% 14.04% 2014 2015 2018 10.0% 5.0% 0.0% 2014 2015 2016 2017 2018 This document is prepared by Ghana Oil Company Limited 13

Corporate Performance FINANCIAL PERFORMANCE 2014-2018 Net Profit 2014 - 2018 4,000 99.12% Growth 3,081 3,000 2,000 1,547 1,955 2,028 2,468 GH ‘000 GH Millions Sales Revenue 2014 - 2018 1,000 2014 2015 2016 2017 2018 Sales increased from GH 1,547.03 million to GH 3,080.51 million 60,000 50,000 40,000 30,000 20,000 10,000 - 54,114 168.34% Growth 35,256 20,166 22,211 2014 2015 2016 39,335 2017 2018 Profit after tax increased from GH 20.17 million to GH 54.11 million GH Millions Total Assets 2014 - 2018 1,500 1,000 500 341 222.59% Growth 758 521 901 1,100 - 2014 2015 2016 2017 2018 Total assets increased from GH 340.83 million to GH 1,099.50 million. This document is prepared by Ghana Oil Company Limited 14

Corporate Performance FINANCIAL PERFORMANCE 2017-2018 Revenue growth is driven by: strong performance in the Retail Sector and Bunkering as well as aggressive marketing campaign resulting in increase in sales volume Profit is driven by increase in margins and cost management 3,080.51 GH Million GH Million 2017 Growth GH '000 4,078,563 24.84% 202,807 41.58% 80,088 50.47% 84,523 35.04% 65,089 25.90% 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2,467.87 2017 2018 Net Profit - GOIL 60 50 40 30 20 10 0 54.11 39.34 5,500 4,500 3,500 2,500 1,500 500 -500 4,078.5 6 5,091.62 2017 2018 Net Profit - GROUP GH Million Net Revenue Gross Profit Operating Profit Profit before Tax Net Profit 2018 GH '000 5,091,624 287,135 120,507 114,138 81,947 Company 2018 2017 Growth GH '000 GH '000 3,080,508 2,467,872 24.82% 229,532 155,907 47.22% 82,025 45,076 81.97% 76,195 49,511 53.90% 54,114 39,335 37.57% GH Million Income Statement Highlights Group Net Revenue - GROUP Net Revenue - GOIL 100 80 81.95 65.09 60 40 20 0 2017 This document is prepared by Ghana Oil Company Limited 2018 2017 2018 15

Corporate Performance Total Assets - GOIL Company 2018 2017 Growth GH '000 GH '000 1,099,504 900,529 22.10% 750,196 594,970 26.09% 349,308 305,559 14.32% Asset growth driven by: Acquisitions and takeovers of distressed competitor stations at strategic locations. Joint venture partnerships in station development. Investment in bunkering facilities at Sekondi Naval Base and Takoradi main port. 750.20 800 594.97 400 200 1,036. 51 500 2017 2018 Total Liabilities - GROUP 906.86 1,000 800 669.44 600 400 200 0 This document is prepared by Ghana Oil Company Limited 1,000 2018 Total Liabilities - GOIL 600 1,500 1,345. 51 0 2017 GH Million Group 2018 2017 Growth GH '000 GH '000 Total Assets 1,345,513 1,036,510 29.81% Total Liabilities 906,864 669,444 35.47% Total Equity 438,649 367,067 19.50% 900.53 Total Assets - GROUP GH Million Balance Sheet Highlights 1,200 1,000 800 600 400 200 0 1,099. 50 GH Million GH Million FINANCIAL POSITION 2017 - 2018 0 2017 2018 2017 2018 16

Corporate Performance KEY RATIOS 2017 - 2018 Gross Profit Margin 5.80% 5.30% Return on Equity Operating Profit Margin 5.64% 2.50% 2.00% 4.97% 18.30% 1.96% 17.80% 1.50% 4.80% 1.00% 17.30% 4.30% 0.50% 16.80% 3.80% 0.00% 2017 9.50 6.40% 2018 9.35 9.30 6.28% 9.10 6.20% 8.80 8.90 6.09% 6.10% 8.70 8.50 6.00% 8.30 5.90% 8.10 5.80% 7.90 5.70% 2017 2018 Fixed Asset Turnover Return on Assets 6.30% 17.73% 16.30% 2017 2018 18.68% 2.37% 7.70 2017 2018 7.50 2017 2018 This document is prepared by Ghana Oil Company Limited 17

Corporate Performance IMPACT OF GOENERGY GROUP NET PROFIT 2013-2018 GOIL GOENERGY SYNERGY GOENERGY 27.83 GH MILLION Reliable product supply Security and quality of Product guaranteed Stability of pricing in the industry. GOIL offers a ready off-taker to Goenergy GOIL offers parent guarantee to Goenergy. GOIL 25.75 18.39 17.36 54.11 35.26 13.76 2013 This document is prepared by Ghana Oil Company Limited 20.17 2014 39.34 22.21 2015 2016 2017 2018 18

Corporate Performance STOCK MARKET PERFORMANCE 3.50 The company commenced trading with an IPO price of GH 0.20 per share in November 2007. The share price since then has performed impressively. 3.00 As at the December 2018, the price has increased significantly by 1,263.64% above the first trading day share price of GH 0.22. GOIL Share Price Trend since IPO 3.12 2.69 GH 2.50 2.00 1.50 1.00 0.22 0.31 0.32 0.16 0.24 0.32 0.50 0.62 0.89 1.05 1.40 1.10 0.00 Per share Statistics 2014-2018 2014 2015 2016 252,223 252,223 391,863 264.83 353.11 431.05 2017 2018 391,863 391,863 1,054.11 1,222.61 1.05 0.080 0.016 1.40 0.088 0.020 1.10 0.090 0.008 2.69 0.100 0.016 3.12 0.138 0.018 13.13 1.52% 15.90 1.43% 12.23 0.69% 26.90 0.61% 22.59 0.59% The company’s Market Capitalisation increased from GH 130.32 million to GH 1,222.61 million representing a 838.19% growth. Market Capitalisation 2014-2018 1,400.00 GH Million Market Statistics Issued Shares (000) Market Captalization (GH Million) Per Share Statistics Price (GH ) Earning (EPS) Dividend (DPS) Market Ratios Price/Earning Dividend Yield(%) 1,222.61 1,200.00 1,054.11 1,000.00 800.00 600.00 400.00 264.83 353.11 431.05 200.00 2014 2015 2016 2017 2018 GOIL has consistently paid dividend to shareholders since its listing on the GSE. This document is prepared by Ghana Oil Company Limited 19

Corporate Performance Ratio Analysis – GOIL (2014-2018) 2014 Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Equity Return on Total Assets Return on Capital Employed Leverage Ratios Equity Ratio Interest Coverage Debt/Equity Operational Efficiency Ratios Asset Turnover Fixed Asset Turnover Account Receivable Days Inventory Days Account Payable Days Liquidity Ratios Current Ratio Quick Ratio 2015 2016 2017 2018 5.70% 5.64% 7.18% 6.32% 7.45% 1.90% 1.77% 2.12% 1.83% 2.66% 1.30% 1.14% 1.74% 1.59% 1.76% 26.23% 23.72% 12.88% 12.87% 15.49% 5.92% 4.26% 4.65% 4.37% 4.92% 32.32% 31.20% 15.04% 14.19% 19.70% 5 Year Average 6.46% 2.05% 1.51% 18.24% 4.82% 22.49% 0.23 9.68 0.28 0.18 11.34 0.35 0.36 10.55 0.05 0.34 6.13 1.95 0.32 10.71 2.15 0.28 9.68 0.95 4.54 12.88 37.33 6.71 51.07 3.75 10.49 49.23 4.80 58.79 2.67 6.71 55.73 5.66 60.55 2.74 6.03 57.88 6.56 65.54 2.80 5.85 55.56 4.13 64.02 3.30 8.39 51.15 5.57 59.99 0.83 0.72 0.78 0.72 0.94 0.88 0.83 0.75 0.83 0.78 0.84 0.77 This document is prepared by Ghana Oil Company Limited 20

Corporate Performance Ratio Analysis – Group (2015-2018) 2015 2016 2017 2018 3.84% 1.60% 1.09% 35.65% 6.76% 45.27% 5.09% 1.95% 1.54% 17.33% 6.18% 21.18% 4.97% 1.97% 1.60% 17.73% 6.28% 21.20% 5.64% 4.88% 2.37% 1.97% 1.61% 1.46% 18.68% 22.35% 6.09% 6.33% 23.83% 27.87% Leverage Ratios Interest Coverage Net Debt/Equity Debt/Equity 18.87 0.29 4.27 16.57 0.04 1.81 10.47 0.00 1.82 14.70 0.15 2.07 15.15 0.12 2.49 Operational Efficiency Ratios Asset Turnover Fixed Asset Turnover Account Receivable Days Inventory Days Account Payable Days 6.20 18.08 30.80 3.66 37.43 4.02 11.09 38.54 5.20 53.69 3.93 9.35 36.16 10.49 56.00 3.78 8.80 38.24 9.53 57.75 4.49 11.83 35.94 7.22 51.22 0.84 0.76 1.01 0.92 0.91 0.74 0.91 0.76 0.92 0.80 Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Equity Return on Total Assets Return on Capital Employed Liquidity Ratios Current Ratio Quick Ratio Average This document is prepared by Ghana Oil Company Limited 21

GOIL Strategic Direction Strategic Intent Strategic Objectives Market Expansion Consolidate market leadership position in fuel marketing retailing and increase aggregate market share. Continue the expansion strategy Diverse into strategic and profitable areas of the industry. Penetrate into the West African sub regional market To be the dominant Market Leader in the downstream Sector of the Petroleum industry Operational Capacity and Service Delivery Continue to build and improve the physical infrastructure, human resource capabilities and business processes for efficient and effective service delivery. Dynamic Subsidiaries Strengthen existing and create new subsidiaries to enhance business growth for profitability and competitive advantage. . Shareholders’ Value Maximisation Maximise shareholders’ wealth through sustainable growth in earnings. This document is prepared by Ghana Oil Company Limited 22

GOIL Strategic Direction Planned Projects Mining Diesel GOIL to penetrate into the mining sector of the petroleum industry. Cylinder Recirculation Program In line with new Government policy on LPG sales, GOIL is in the process of constructing an LPG cylinder recirculation plant in Tema and Kumasi. Bitumen Storage Depot The company is currently constructing a Bitumen storage Depot in Tema industrial area. Upstream Oil Exploration Partnership With ExxonMobil for Upstream Oil exploration GOIL has identified these infrastructure as the key drivers for the achievement of it’s strategic goal of becoming the dominant market leader in the downstream sector of the petroleum industry in Ghana . This document is prepared by Ghana Oil Company Limited 23

This document is prepared by Ghana Oil Company Limited 24

Income Statement Highlights 2018 2017 Growth 2018 2017 Growth GH '000 GH '000 GH '000 GH '000 Group Company 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2017 2018 ion Net Revenue - GOIL 6-500 500 1,500 2,500 3,500 4,500 5,500 2017 2018 n Net Revenue - GROUP 39.34 54.11 0 10 20 30 40 50 60 2017 2018 n Net Profit - GOIL 65.09 81.95 0 20 40 60 .

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